ArcelorMittal’s third quarter net income falls to £222 million

The Luxembourg-based company, which follows a January-December financial year, recorded £720m in net income attributable to equity holders in the same period in 2023.

• EasternEye
• 08 November, 2024

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By: EasternEye

ARCELORMITTAL reported a 69 per cent decline in net income to £222 million in the third quarter, driven largely by reduced steel shipments.

The Luxembourg-based company, which follows a January-December financial year, recorded £720m in net income attributable to equity holders in the same period in 2023, according to a company statement. Net income in the second quarter of 2024 was £391m.

CEO Aditya Mittal stated that the medium- to long-term global outlook for steel remains positive, and ArcelorMittal plans to leverage its geographic presence and R&D capabilities to meet market needs. He added that demand is expected to be stronger in the second half of the year than in 2023, with low inventory levels suggesting that re-stocking will occur as demand recovers. Increased imports into Europe, however, present a concern, and Mittal called for stronger trade measures.

“Our free cash flow generation allows us to invest in the business for strategic growth and return capital to shareholders. Our first renewables project began supplying power to AMNS India in September,” Mittal said.

During the quarter, crude steel production fell to 14.8m tonnes, down from 15.2m tonnes in the same period last year. Third-quarter sales also decreased to £11.7 billion from £12.9 bn a year earlier. Steel shipments were lower at 13.4m tonnes, compared to 13.7m tonnes a year ago.

ArcelorMittal’s joint venture with Nippon Steel produced 1.7m tonnes of crude steel in the third quarter, down from 1.9m tonnes in the same period last year. Sales in the joint venture declined to £1.2 bn from £1.3 bn, primarily due to lower steel prices.

In India, ArcelorMittal launched a green energy project with a 1 GW capacity, at an investment of £542m, supplying power to AMNS India since September 2024. The project is expected to cover 20 per cent of AMNS India’s Hazira plant electricity needs, reducing carbon emissions by 1.5m tonnes per year and adding an estimated £78m to ArcelorMittal’s EBITDA.

(With inputs from PTI)